TY  - JOUR
AU  - Wolf,Holger C.
TI  - Patterns of Intra- and Inter-State Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5939
PY  - 1997
Y2  - February 1997
UR  - http://www.nber.org/papers/w5939
L1  - http://www.nber.org/papers/w5939.pdf
N1  - Author contact info:
Holger C. Wolf
Center for German and European Studies
ICC-503
School of Foreign Service
Georgetown University
Washington, DC  20057
Tel: 202/687-8079
Fax: 202/687-8359
E-Mail: moneyhist@aol.com
AB  - Recent studies suggest that intranational trade is "excessive' compared to international trade.  An intuitive explanation for this home bias is provided by national trade barriers.  A dataset of trade between US states, however, reveals that home bias extends to subnational units.  The data suggest three additional stylized facts.  First, shipment distances are shorter for intermediate than for final goods.  Second, states located close to each other tend to have similar production patterns.  Third, trade flows are higher among states with similar production patterns.  The stylized facts are consistent with a complementary explanation of home bias resulting from a spatial clustering of production driven by natural and created comparative advantage.
ER  -